The finance team of an organization has prepared an end of quarter balance sheet. The stockholders equity amount is a negative v
alue. What must be true in this situation? A. The organization is losing money each period.
B. The organization’s expenses are greater than its assets.
C. The organization has no assets of value.
D. The organizations liabilities are greater than its assets
The finance team of an organization has prepared an end of quarter balance sheet. The stockholders equity amount is a negative value. What must be true in this situation? D. The organizations liabilities are greater than the assets. Stockholders equity is also known to many as shareholders equity. This is listed on the companies balance sheet and includes the total assets and the total liabilities subtracted then equals stockholder's equity. Since you subtract the liabilties from the assets, if there is a negative value then the liabilities are greater than the assets.
the bonds pay a semiannual coupon, but the last coupon is paid along with the face value (or maturity) value of the bond. For example, if the bond pays a 6% coupon rate, on February 20, 2039 the investor will receive ($1,000 x 6% x 1/2) + $1,000 = $1,030. The exact date might change if the maturity date is a Saturday or Sunday, but it should be paid on the next business day.
Economic stimulus refers to change in monetary or fiscal policies by the Federal Reserve with growth as an objective. One of the ways of implementing economic stimulus is lowering of interest rates by the Fed.
Lowering of interest rates by the Fed would have an effect on loans availed by the public. The quantity of loanable funds shall increase which would lead to lowering of interest rates charged by the banks.
In the given case, Nick stands to gain in the sense he can avail car loan at a lower rate of interest than currently offered, if he waits for Fed to implement it's new policies.